Professional Indemnity Insurance Description
Professional Indemnity Insurance is quite different. The Professional Indemnity Insurance policy is written on the American styled “claims made policy wording”. This type of insurance is not purchased for say 1 or 2 years. It is a long-term commitment. If you don’t want a long-term contract don’t buy the Professional Indemnity Insurance. It could be a waste of money, if you have a claim.
With these policies a new contract is issued annually with a retroactive clause to cover past unknown claims. For example you have a business where it is desirable to have this insurance, someone with, say, an IT Computer business. Business commences in 2002 with Professional Indemnity Insurance but you decide to sell in 2005. To be fully covered you must continue to buy a run off Professional Indemnity Insurance for the period of the Commonwealth Statute of Limitations, because if the policy is not in place at the time of notification of the claim to you and the insurer, the insurer simply will not pay. We as your brokers can’t do anything to help you in this situation.
Who should Buy Professional Indemnity Insurance
Who buys Professional Indemnity Insurance? Any person who gives professional advice according to an established discipline, not just a lawyer or medical person but any person giving advice to any Third Party. This means you must exercise an appropriate level of skill and competence, it is the law. In the event a Third Party suffers a loss and sues you, your Professional Indemnity Insurance policy is designed to defend your position and settle any judgement made against you or any situation your insurer agrees to pay in your behalf
Professionals including accountants, architects, construction businesses, engineers, health professionals including doctors, nurses, and so on, IT consultants, lawyers and others in the legal industry, and so on. Basically any business or professional who give professional advice.
Remember the insurer pays to defend your position and reputation, and does not just pay a loss.
Pitfalls of Professional Indemnity Insurance Policies
The loss or “occurrence” must be made during the currency of the Professional Indemnity Insurance policy, this is why a Professional Indemnity Insurance policy must be kept current after selling or discontinuing a professional business. The Professional Indemnity Insurance policy will not respond if this is not the case.
It is important to have a Professional Indemnity Insurance policy which offers continuous cover. This is like a “loyalty bonus” for a client who has been insured with one insurer for successive periods of insurance. It offers cover for a situation or event that should have been notified to the insurer in a previous period and was not notified. Without this no claim would be admitted.
When purchasing Professional Indemnity Insurance you need an unlimited “retroactive clause”. This affords you the best cover
We strongly recommend you contact us as specialist Professional Indeminty Insurance brokers Australia, to ensure you get the most appropriate cover for your situation.
For More Information About Professional Indemnity Insurance Policies …
For more information about Professional Indemnity Insurance Policies send us an email, call us on 1300 880 409 or use our Contact page to send us an online inquiry. We will contact you within 24 hours to answer your inquiry.